Microsoft stock price target maintained at $650 by DA Davidson on cloud growth

Investing.com - DA Davidson has reiterated its Buy rating and $650 price target on Microsoft (NASDAQ:MSFT) stock, citing proprietary developer data that indicates continued cloud growth.

The firm’s analysis suggests Microsoft Azure is expected to continue showing the fastest growth rate among major cloud providers, outpacing competitors Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN).

DA Davidson maintains a Neutral rating with a $190 target on Google and a Buy rating with a $265 target on Amazon, noting the possibility of some acceleration for Amazon Web Services (AWS), which has lagged behind Azure to date.

The firm expects AWS to gain momentum as the new Anthropic buildout comes online, potentially boosting Amazon’s cloud performance in the coming quarters.

Microsoft remains DA Davidson’s top pick among major tech companies, with the firm stating that Microsoft is most likely to leverage AI-driven growth into other enterprise software categories, representing the best growth profile in the group.

In other recent news, several investment firms have raised their price targets for Alphabet, citing various factors influencing the company’s performance. JPMorgan increased its target to $300, highlighting Alphabet’s strong financial performance and AI innovation as key drivers, along with a favorable outcome in the DOJ Search Commercial Agreement trial. KeyBanc Capital Markets also set a $300 target, noting the momentum in Alphabet’s Search, Cloud, and Waymo businesses, expected to be reflected in the third-quarter results. Stifel raised its target to $292, attributing the increase to positive developments in the antitrust case against Alphabet’s Search business, which has improved market sentiment.

Additionally, Alphabet announced a partnership with Planet Labs, where Planet Labs is using Google’s Earth AI models to analyze satellite data, enhancing efforts to map environmental changes like deforestation. This collaboration is part of Google’s broader strategy to expand its Earth AI capabilities. Furthermore, Google has agreed to invest in THG Ingenuity, a demerged arm of the British e-commerce company THG, with a potential valuation of $1.01 billion. These developments reflect Alphabet’s ongoing strategic initiatives and partnerships across various sectors.

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